The Thrift Savings Plan, or TSP, is one of the best benefits available to federal employees. It's a retirement savings plan that allows employees to save for retirement on a tax-deferred basis. In this guide, we will discuss all aspects of the TSP plan and how it can benefit federal employees. Keep reading for the Federal Employee Benefit Coordinators guide to the TSP.
What Is TSP?
The TSP was created by the U.S. Government and administered by the U.S. Department of Treasury as a retirement savings program for federal government employees. It allows those who are eligible to save for retirement in a tax-advantaged savings account. The contributions can be made either pre-tax or post-tax. You can learn more about TSP with Federal Employee Benefit Coordinators.
TSP vs 401(k)
Although similar to a 401(k), the TSP is not quite the same. With a TSP, your retirement plan is not directly regulated by the federal government. It’s administered by the Employee Benefits Security Administration (EBSA), an independent agency within the IRS, and oversees employee benefits. To ensure you have a clear understanding and the proper help, contact Federal Employee Benefit Coordinators.
Maximize Your TSP
As of 2022, the maximum contribution limit for federal employees is $20,500. However, for those military personnel deployed in combat zones and receive tax-free income, you can contribute up to $61,000. To learn what contributions you can be eligible for or for more ways to maximize your TSP plan, reach out to Federal Employee Benefit Coordinators.
Hire a Benefits Coordinator
If you're a federal employee, it is important to have easy access to training and information about your federal benefits before you retire. Federal Employee Benefit Coordinators can provide you with this information and help you create a solid Strategic Federal Retirement Plan in place and provide an easy guide to TSP.
Federal benefits are complex, so working with a professional who specializes in Federal employee benefits can make all the difference when it comes time to retire. Federal Employee Benefit Coordinators have been providing consultation to Federal employees with a proactive approach.
